Corporate | 5 May 2015 07:30
|
Infineon Technologies AG / Key word(s): Quarter Results/Forecast
– INTEGRATION OF INTERNATIONAL RECTIFIER WELL ON TRACK – Q2 FY 2015: REVENUE UP BY EUR355 MILLION FROM EUR1,128 MILLION TO EUR1,483 MILLION DUE TO CONSOLIDATION OF INTERNATIONAL RECTIFIER, INCREASED DEMAND FOR CHIP CARD & SECURITY PRODUCTS AND POSITIVE CURRENCY DEVELOPMENT; SEGMENT RESULT UP FROM EUR169 MILLION TO EUR198 MILLION; SEGMENT RESULT MARGIN DOWN QUARTER-ON-QUARTER FROM 15.0 PERCENT TO 13.4 PERCENT – NET INCOME AND EARNINGS PER SHARE LOWER AS A RESULT OF ACQUISITION-RELATED CHARGES; ADJUSTED EARNINGS PER SHARE STABLE – OUTLOOK FOR Q3 FY 2015: QUARTER-ON-QUARTER REVENUE GROWTH OF BETWEEN 7 AND 11 PERCENT AND SEGMENT RESULT MARGIN OF 15 PERCENT AT THE MID-POINT OF THE GROWTH RANGE – OUTLOOK FOR FY 2015: BASED ON AN ASSUMED EXCHANGE RATE OF US$ 1.10 TO THE EURO, REVENUE GROWTH OF 36 PERCENT, PLUS OR MINUS 2 PERCENTAGE POINTS AND SEGMENT RESULT MARGIN OF 15 PERCENT EXPECTED AT THE MID-POINT OF THE GROWTH RANGE Neubiberg, Germany, May 5, 2015 – Infineon Technologies AG today reports its results for the second quarter of the 2015 fiscal year ended March 31, 2015. “Infineon has recorded a big revenue jump in the second quarter. Business was running very well, with additional tailwinds provided by the acquisition of International Rectifier and the strong dollar”, stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. “The signals we are receiving from our markets are generally positive. We are making good progress with the integration of International Rectifier. Our strategy is paying off and Infineon remains on a growth path.”
1
The calculation for earnings per share is based on unrounded figures.
SCOPE OF REPORTING
REVIEW OF GROUP FINANCIALS FOR THE SECOND QUARTER OF THE 2015 FISCAL YEAR
Segment Result improved by 17 percent from EUR169 million in the first quarter to EUR198 million in the second quarter of the current fiscal year. The first-time consolidation of International Rectifier as well as currency effects had a positive impact on Segment Result, whereas the normal round of selling price reductions partly offset the positive impact of the step-up in revenue. The previous quarter’s Segment Result had also benefitted from the one-time positive impact arising from reduction in future rental expenses for the Group’s Campeon headquarters. The Segment Result Margin came in at 13.4 percent, down from the first quarter’s 15.0 percent. In addition to the factors stated above, the decrease in Segment Result margin was also a consequence of the first-time consolidation of International Rectifier. Non-Segment Result decreased to a negative amount of EUR113 million due to additional acquisition-related depreciation and amortization and other expenses totaling EUR102 million following the acquisition of International Rectifier. Therefore, operating income declined quarter-on-quarter from EUR153 million to EUR85 million. Income from continuing operations fell on a similar scale from EUR130 million to EUR69 million in the second quarter of the 2015 fiscal year. Income from discontinued operations , after rounding, was EUR0 million, as a result of which second-quarter net income also amounted to EUR69 million. In the first quarter, Infineon reported income from discontinued operations amounting to EUR6 million and net income of EUR136 million. Earnings per share declined quarter-on-quarter from EUR0.12 to EUR0.06 (basic and diluted). Second-quarter adjusted earnings per share * (diluted) amounted to EUR0.13. Acquisition-related depreciation and amortization and other expenses, net of tax, were eliminated for the purposes of calculating adjusted earnings per share (diluted). (*Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.) Investments – which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development assets – amounted to EUR150 million in the second quarter 2015, compared to the EUR141 million in the preceding quarter. Depreciation and amortization rose quarter-on-quarter from EUR141 million to EUR199 million, mainly due to the first-time inclusion of depreciation and amortization arising from the consolidation of International Rectifier. This figure includes an expense of EUR33 million recorded on assets recognized or revalued in conjunction with the purchase price allocation. Free cash flow from cash flow from continuing operations deteriorated to a negative amount of EUR1,880 million in the second quarter, of which EUR1,864 million (after deduction of cash acquired) are related to the acquisition of International Rectifier. The equivalent figure for the free cash flow for the first quarter of the 2015 fiscal year was a negative EUR171 million. Net cash provided by operating activities from continuing operations was positive in the second quarter of the current fiscal year and amounted to EUR135 million. As a result of the purchase price payment for International Rectifier and the distribution of a dividend totaling EUR202 million in February, the gross cash position decreased from EUR2,107 million at December 31, 2014 to EUR1,656 million at March 31, 2015. Since part of the purchase price for International Rectifier has been financed with outside capital, short-term debt and long-term debt increased during the three-month period to EUR1,832 million. Reflecting these changes, the net cash position at the end of the second quarter was a negative EUR176 million, compared to a positive EUR1,917 million at December 31, 2014.
INTEGRATION OF INTERNATIONAL RECTIFIER
Sales has been integrated into one joint team since March. In addition, many key organizational changes have already been completed. Infineon has also started the optimization of the product portfolio. In March, the combined range of gallium nitride products was presented at the US trade fair for power electronics – APEC 2015, for example. Additionally, a comprehensive concept for the combined production network has been drawn up. We will be discontinuing manufacturing operations at Techview in Singapore by the end of the year. Production in Newport, Wales, will be running at full capacity until the end of calendar year 2016 and will then be phased out in 2017. In parallel, we are looking for a buyer to take over and continue to operate the factory.
OUTLOOK FOR THE THIRD QUARTER OF THE 2015 FISCAL YEAR
OUTLOOK FOR THE 2015 FISCAL YEAR
Investments during the 2015 fiscal year are expected to be in the region of EUR800 million. This figure includes investments in plant and equipment at existing factories and in intangible assets including capitalized development assets. Specifically included in these investments are EUR60 to EUR70 million for readying the second shell in Kulim, Malaysia, for volume production and EUR21 million for the purchase of Qimonda patents in conjunction with the settlement reached with the insolvency administrator of Qimonda AG. Depreciation and amortization will increase to around EUR750 million, mostly as a result of acquisition-related depreciation and amortization. Infineon segments’ performance in the second quarter of the 2015 fiscal year can be found in the quarterly information at http://www.infineon.com . All figures in this quarterly information are preliminary and unaudited.
ANALYST AND PRESS TELEPHONE CONFERENCE
The
Q2 Investor Presentation
is available (in English only) at:
http://www.infineon.com/cms/en/corporate/investor/reporting/index.html
– May 28, 2015 CCS Analyst Call by Stefan Hofschen, Division President Chip Card & Security – May 28, 2015 J.P. Morgan Cazenove Investor Forum, Amsterdam – Jun 2, 2015 DZ Bank Sustainable Technologies Conference, Zurich – Jun 3, 2015 Danske Bank German Corporate Day, Copenhagen – Jun 17, 2015 Deutsche Bank German, Swiss & Austrian Conference, Berlin – Jul 30, 2015* Earnings Release for the Third Quarter of the 2015 Fiscal Year – Sep 16, 2015 ATV Analyst Call by Jochen Hanebeck, Division President Automotive – Sep 22, 2015 Baader Investment Conference, Munich – Sep 23, 2015 Berenberg Bank and Goldman Sachs German Corporate Conference, Munich – Nov 11 – 13, 2015 Morgan Stanley TMT Conference, Barcelona – Nov 26, 2015* Earnings Release for the Fourth Quarter and Full 2015 Fiscal Year – Nov 30 – Dec 3, 2015 Credit Suisse TMT Conference, Scottsdale/Arizona
ABOUT INFINEON
Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).
Further information is available at
www.infineon.com
D I S C L A I M E R This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 2015-05-05 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | Infineon Technologies AG | |
| Am Campeon 1-12 | ||
| 85579 Neubiberg | ||
| Germany | ||
| Phone: | +49 (0)89 234-26655 | |
| Fax: | +49 (0)89 234-955 2987 | |
| E-mail: | investor.relations@infineon.com | |
| Internet: | www.infineon.com | |
| ISIN: | DE0006231004 | |
| WKN: | 623100 | |
| Indices: | DAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX | |
| End of News | DGAP News-Service |
|
|
| 352707 2015-05-05 |